Virginia Avenue State Bank (Indianapolis, IN)

Episode Information

Episode Type
Suspension → Closure
Start Date
May 1, 1933*
Location
Indianapolis, Indiana (39.768, -86.158)
Bank Type
state
Routing Number
20-0090

Metadata

Episode ID
Bank ID
City ID
180452890
Model
gpt-5-mini
Short Digest

Events (3)
1. May 1, 1933* Suspension
Cause
Government Action
Cause Details
Closed by order of the state banking commissioner; bank department took charge.
Newspaper Excerpt
the banks were closed on orders of the commissioner and now are in charge of the state banking department.
Source
newspapers
2. May 12, 1933 Receivership
Newspaper Excerpt
Receivers for two state banks in Indianapolis were appointed Friday... Edward A. Oliger ... was for the Virginia Avenue State Bank.
Source
newspapers
3. December 20, 1933 Other
Newspaper Excerpt
More than 700 depositors ... of the defunct Virginia Avenue State Bank will share ... checks representing a 40 per cent. dividend are mailed today.
Source
newspapers

Newspaper Articles (12)
1. March 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 15, 1933

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Article Text

EIGHT MILLIONS PUT IN BANKS Deposits Are Heaviest in City's History, Report Officials. (Continued from Page One) cepting deposits which may be withdrawn in full. These included the Aetna Trust and Savings bank, Virginia Avenue State bank, Belmont State bank, Marion County State bank, Peoples State bank, and Citizens State bank of Beech Grove. State banking officials announced a large number of banks open throughout the state and they were working at top speed today checking condition of other banks in preparation for issuing permits for their reopening as soon as possible. It was announced at the statehouse today that practically every county in the state has at least one bank open. Bankers pointed out that the heavy excess of deposits over withdrawals was not caused by the limitation on cash withdrawals. The banks were forced to ask very few persons to sign affidavits that heavy withdrawals were for necessary purposes and not for hoarding. Gold coins and gold certificates today continued to pour into banks, officials reporting more than $100,000 in gold received in exchange for currency Tuesday. It was estimated that more than $700,000 in gold coin and gold certificates has been shipped to the federal reserve bank at Chicago in the last week. Heavy Penalty Provided A maximum penalty of a $10,000 fine and ten years in prison is provided for persons hoarding gold and gold certificates. Banks of the country have until Thursday to furnish the government with lists of persons who have withdrawn gold or gold certificates in sizeable quantities in the last few years without returning it. Building and loan associations reported increased business Tuesday and today as payments were made on loans. During the banking holiday no payments were made on loans and PA borrowers hastened to make paye ments as soon as funds were available. S Most of the money received was in cash, with few checks being tendered, it was said. Operations of these financial in] stitutions have been on a restricted basis for several months.

2. May 9, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 9, 1933

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Article Text

BANK RECEIVERS ASKED Attorney-General Files Suits in Behalf of Commissioner. Suits asking appointment of receivers for the Belmont State bank and the Virginia Avenue State bank were filed today in superior court one by Philip Lutz Jr., attorneygeneral, in behalf of Richard A. McKinley, state banking commissioner. Complaints in the suits contain only formal allegations, to the effect that the banks were closed on orders of the commissioner and now are in charge of the state banking department.

3. May 9, 1933 The Indianapolis News Indianapolis, IN

Article Text

BANK RECEIVERS ASKED

Commissioner's Suits Name Virginia Avenue and Belmont State, Suits for the appointment of receivers for the Virginia Avenue State Bank and the Belmont State Bank were filed in superior Room Tuesday, by Richard A. McKinley, state The banks few days ago by the state Judge John W. Kern set Friday forenoon as the date for hearings on the suits.

4. May 9, 1933 The Indianapolis Times Indianapolis, IN

Article Text

BANK RECEIVERS ASKED

Files Suits in Behalf of Commissioner.

Suits asking appointment of receivers for the Belmont State bank and Virginia Avenue State bank were filed today in court one by Philip Lutz attorneygeneral, in behalf of Richard A. McKinley, state banking commissioner. Complaints the suits contain only formal allegations, to the fect that the banks were closed on orders the and are in charge of the state banking

5. May 10, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 10, 1933

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Article Text

SET BANK HEARINGS Receiver Action to Be Conducted Before Judge Kern Friday. Petitions for appointment of receivers for the Virginia Avenue State bank and the Belmont State bank will be heard in superior court one Friday by Judge John W. Kern. Suits were filed by Richard A. McKinley, state banking commissionem The institutions were closed last week by the bank department.

6. May 12, 1933 The Indianapolis News Indianapolis, IN

Article Text

TWO RECEIVERS NAMED.

Court Acts in Belmont and Virginia Avenue Bank Cases. Receivers for two state banks in Indianapolis were appointed Friday by Judge John W. Kern, of superior court. James B. Ross, attorney, was appointed for the Bank and Edward A. Oliger, also an was for the Virginia Avenue State Bank Thomas D. Barr, of the state banking department, testified both banks were insolvent. Deposits of the Belmont State Bank total with bills of $60 The deposits in the Avenue State Bank $90,000, with bills payable of $82,000.

7. May 13, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 13, 1933

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CREDITOR SUES CLOSED BANK'S STOCKHOLDERS Double Liability Judgment Asked in Meyer-Kiser Court Action. Suit to collect from sixty-five stockholders of the defunct MeyerKiser bank on a double liability basis, was filed Friday in circuit court by Charles D. Babcock, an attorney, who avers he is a general creditor with a claim of $150. Babcock, member of a depositors committee, states in the suit that he is acting for himself and more than 1,000 other creditors of the bank. Among the defendants are stockholders who served until a week ago as liquidating agents, having been displaced by Thomas E. Garvin, receiver, appointed by Circuit Judge Earl R. Cox. These stockholders are Ferd S. Meyer, from whom the suit demands $66,640; J. J. Kiser, $66,000, and M. S. Cohen, $66,500. May Pay Well, is Claim From Sol Meyer the suit asks $66,500. Amounts of $6,000 or less are sought from remaining defendants. Order for discharge of all former employes of the bank and cessation of operation of all departments was given Garvin by Cox today. Last Saturday Garvin discharged fourteen of the eighteen employes of the liquidating agents. Depositor creditors of the defunct State Savings and Trust Company plan to continue their search for assets of the receivership, it was revealed today when petition was filed with Cox asking for a further investigation. Examination Is Sought The petition, signed by K. I. Hamilton, J. S. Sisloff, R. D. Evans and S. Pat Solomon, asked the court to "arrange for an examination of the records and activities of the officers of the bank and its subsidiary, the State Property Company." Meyer-Kiser bank depositors could be paid in full, if total assets of the bank can be liquidated at an average of 70 per cent of their book value, Kiser said today, adding that only time and general business conditions govern this possibility. Garvin Thursday said the bank may pay depositors 25 cents on the dollar. Kiser said that income from all sources during the twenty-three months of liquidation of $262,545.75. Expense for the same period, he said, was $232,125.27. leaving a net operations profit of $30,420.48. Cites Examination Results Examination by the state banking department showed approximately the following, Kiser said: Total liabilities, exclusive of $614.000, in capital surplus and undivided profits, $1,878,000; total book value of assets, $2,492,000, valued by banking department at $1,373,000. If the assets are liquidated at the value placed on them by the banking department on the basis of the recent examination, depositors and creditors would receive approximately 70 per cent, Kiser said. Receivers for the Belmont State bank and Virginia Avenue State bank, closed recently on order of the state banking department, were appointed today by Judge John Kern in superior court one. Frank B. Ross, attorney and former probate judge, was named the Belmont receiver with bond of $15,000. Edward A. Oliger, attorney, was appointed the Virginia Avenue receiver at $10,000 bond.

8. November 15, 1933 The Indianapolis Star Indianapolis, IN

Article Text

LOANS FROM RFC RELEASE

Payment of Half of Frozen Deposits Planned Before Christmas-City Share Is $1,500,000.

Christmas closed companies planned by Seventh Federal Indiana and the state committee is arranging frozen deposits about defunct banks through reconfinance loans. will make possible Christmas gifts by many would have small yuletide cheer It will mean business for and possible payment of debts. Details of the plan be outlined and liquidating agents banks meeting tomorthe Indianapolis Athletic

Would Release Nearly Half. At the banking department yesterday it explained that the expected release about half the deposits the closed banks in the Seventh district, which comprises most liquidating agents invited to attend the meeting letters sent out by Robert R. Batton, chairman of the Federal committee and the other four members, all of whom are members the department financial instituFour closed Indianapolis banks eligible the state officials explained. half the deposits in Indianapolis institutions as approximately $1,500,000 free in the The Indianapolis banks and approximate deposits, Farmers Trust $1,Aetna Trust Company, Virginia AveState and Belmont State to Furnish Funds. Mechanics of the plan simply provide for long-term loans to the funct banks, through the receivers liquidating Existing sets are pledged collateral for the loans. funds derived from the reconstruction finance corporation. The assets be liquidated orderly fashion and the loans repaid to the Federal government by the receivers and liquidating agents. This will the flooding markets bank and prevent assets sacrifice figures. period five years the assets be advantage, it explained. Banks eligible the loans include about closed was explained banking department.

Banking Department at Helm. Most of the involved be done through the state banking deThe Indiana committee will co-opwith the finance corporation and the deposit liquidation board in making the loans banks through James Leavell of Chicago and Walter W. Smith of the Seventh and Eighth Federal districts The Indiana committee. headed by Mr. Batton of includes Myron H. Gray of Muncie, Harvey Hartsock Indianapolis, Setser Columbus and Oscar Welborn of Indianapolis. one committees of bankers and business men appointed to speed the of more than $3,000,assets closed national and state banks throughout the country.

Banks to Make Applications. The receive applications from closed banks for loans from the poration. The committee then will review the application and fix liquidating for the listed assets period of three to five years. The application then will be passed along to the district chairmen with for amount, less the cost determining district chairman will recomaction to the deposit liquidatBanks operating under liquidating agent of the state banking mission receiver to which the notices sent included Citizens Loan and Trust Company of Frankfort, Peoples State bank at East ChiCitizens State bank at NoblesExchange Lyons, Wabash County Loan Trust Company Trust ComIndianapolis, Valley

9. November 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 15, 1933

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Article Text

BANK 'THAW' OF $20,000,000 TO BE FORMULATED Meeting Set to Arrange for Liquidation With RFC Money. Plans for a $20,000,000 liquidation of assets in eighty defunct state banks will be drafted by the state banking commisison and Seventh district reserve committee at a meeting tomorrow afternoon at the Indianapolis Athletic Club. The move is in addition to the one announced last week for putting $10,500,000 into liquidation through the Home Owners Loan Corporation, it was said. Receivers Invited Robert R. Batton, chairman of both the federal reserve district committee and state banking commission, called the meeting and will preside. Funds for the liquidation are to be provided by the RFC. Receivers and liquidating agents for the closed institutions have been asked to attend the meeting and hear the plan unfolded. Machinery of the project is to provide long term loans to the banks on frozen assets. Four in City Affected It was estimated by the state banking department that nearly all can have their deposits released by Christmas in this manner. Indianapolis banks affected by the plan and approximate amount of deposits include the Farmers Trust Company, $1,280,000; Aetna Trust Company, $1,280,000; Virginia Avenue State bank, $123,000, and Belmont State bank, $250,000.

10. December 20, 1933 The Indianapolis Times Indianapolis, IN

Article Text

DEFUNCT BANK TO PAY OFF $27,000

700 Depositors to Receive 40 Per Cent.

More than 700 depositors and creditors the defunct Virginia Avenue State Bank will share Christmas present when checks representing per dividend are mailed today. Anof the dividend payment made by Superior Judge John Kern. whose court the pending The checks will mailed today by Edward Oliger. bank receiver. following granting the dividend order Judge Kern petition Mr. Oliger's attorneys, Kane, Blain and 'Although is probable that the per cent dividend only that depositors creditors will receive, regard the accomplishof as ally fine piece of work." Judge Kern declared. Larger depositors and creditors of the bank were personally and the Judge Kern The also approved payment of preferred claims to Rieman and Walter Winston Pedlow. and Calvary United Brethren An allowance of made the Western Audit Company, which acted accountants the receiver All claims not filed with the as instructed by the court now and forever the order declared.

Publisher's Daughtetr to Wed

NEW Dec. engagement Miss Natica Nast, daughter Conde publisher Gerald son Mr. and Mrs. Felix M. was yesterday. The will take place privately this

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11. December 21, 1933 The Indianapolis Star Indianapolis, IN

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BANK DEPOSITORS TO GET DIVIDEND

700 of Defunct Virginia Avenue Institution Will Receive 40 Pct. Today.

A Christmas gift in the form of per cent dividend to depositors of the defunct Virginia Avenue bank will be received by the 700 de positors Judge John F. Kern of Superior court, Room 1, yesterday ordered Edward A. Oliger, bank receiver, to declare the dividend and send out checks totaling more than $27,000 to depositors. The dividend was the first to be paid to depositors of a defunct Marion county bank in several months. Depositors of the major Indianapolis banks that are in in Circuit court including the Washington Bank and Trust Company, the State Saving and Trust Company, the City Trust Company and the Meyer-Kiser bank, have not received any dividends and none are in prospect, according to the receivers. Three Others Pay Dividends. Three other closed banks, the Wild & Co. State bank, the Postal Savings State bank and the Farmers Trust Company receivership in other county courts, declared "Although it is probable that the 40 per cent dividend is the only one that depositors and creditors will ceive, regard the accomplishment of the receiver unusually fine piece of work Judge Kern said The succeeded in collecting more than $32,000 in stockholders' liability. Larger depositors and creditors of the bank were consulted sonally and they approved the dividend, according to the judge.

12. December 21, 1933 The Indianapolis News Indianapolis, IN

Article Text

$26,000 CHECKS

Sum Represents 40 Per Cent. for Virginia Avenue Bank Depositors.

Checks totaling more than $26,000 were in the mail Thursday to more than 700 depositors and creditors of the defunct Virginia Avenue State Bank. This advance "Christmas present" represented a 40 per cent. dividend, authorized by granting of an order to Edward A. Oligar, bank receiver, by Judge John W. Kern, of Marion county superior court. Payment of preferred claims also was approved in the dividend order. The following claims were allowed: H. W. Rieman & Son, $322.74; Walter Stalhut, $25.02; Winston E. Pedlow, $2.84, and Calvary United Brethren church, $7.78. Allowance of $437.50 was made for the Western Audit Company, as accountant for the receiver. Larger depositors and creditors of the bank were consulted personally and approved the dividend, Judge Kern said.